There are also several consolidation options available from the federal government for those with student loans.Theoretically, any use of one form of financing to pay off other debts is practicing debt consolidation.Debt consolidation means taking out a new loan to pay off a number of liabilities and consumer debts, generally unsecured ones.In effect, multiple debts are combined into a single, larger piece of debt, usually with more favorable pay-off terms: a lower interest rate, lower monthly payment or both.We have been receiving allot of enquiries related debt problems and specifically with the current economic climate in South Africa, more and more people seem to find themselves in debt.
It's important to remember that after debt consolidation, consumers should closely monitor their finances and avoid taking on any new debt.
Consumers can use debt consolidation as a tool to deal with student loan debt, credit card debt and other types of debt.
There are several ways consumers can lump debts into a single payment.
So what is debt consolidation exactly and how does it affect you?
This is the question that has been put to us quite a few times and that's why we decided to tell you a bit more about what this entails exactly.